04-086 Royal Realty & Homecomers RRC, Inc
AGREEMENT
22800 Mercedes Road
APN 342-33-045
This AGREEMENT made and entered into this ~ ~I~day of ~ 2004, by and
between the CITY OF CUPERTINO, a municipal corporation of the State of C ifornia, hereinafter
designated as CITY, and Royal Realty and Hamcomers RRC Inc., hereinafter designated as
DEVELOPER.
WITNESSETH
WHEREAS, the DEVELOPER has made application to the CITY to Secure a Building
Permit to construct a Single Family Dwelling hereinafter referred to as "Project".
WHEREAS, CITY hereby approves the improvement plans and specifications prepared for the
Project by Yan Yan Chew, R.C.E, a true copy of vrhich improvement plans and specifications are on
file in the office of the City Engineer of Cupertino; and
WHEREAS, the same are incorporated herei~i by reference, the same as though set out in full;
NOW, THEREFORE, said improvement pla~~s and specifications shall be hereinafter called the
"Plans", and the work to be done under the Plans sh<<ll be called the "Work".
Page 1 of 10
File No. 52,354
WHEREAS, pursuant to the provisions of this AGREEMENT, the CITY hereby established
the amounts of Bonds, Fees, and Deposits as set for~:h in the following schedule:
SCHEDULE OF BONDS, l?EES, AND DEPOSITS
Street Improvement Category:
PART A. Faithful Performance Bond: $ 14,500.00
110-2211
PART B. Labor and Material Bond: $ 14,500.00
110-2211
PART C. Checking and Inspection Fee: $ 2,385.00
110-4538
PART D. Development Maintenance Deposit: $ 1,000.00
110-2211
PART E. Storm Drainage Fee: Basin 2 $ 1,444.80
Account #: 215-4073
PART F. One Year Power Cost: N/A
110-4537
PART G. Street Trees: By Developer
PART H. Map Checking Fee: N/A
110-4539
PART I. Park Fee: Zone III $ 15, 750
Account #: 280-4083
PART J. Water Main Reimbursement: N/A
110-4554
PART K. Maps and/or Improvement Plans: N/A
As specified in Item #21 of agreemc;nt
Page 2 of 10
NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the parties
hereto as follows, TO WIT:
DEDICATION
B. The DEVELOPER offers to dedicate the real property shown on Exhibit "A", which
is attached hereto and made a part hereof b}~ reference. Said dedicated property shall be free
and clear of all liens or encumbrances except those, which the CITY shall waive in writing.
The DEVELOPER agrees not to revoke said offer of dedication, and to keep said offer open
until the CITY accepts offer by resolution.
C. Upon execution of this AGREEI~ZENT, the DEVELOPER agrees to deliver a
properly executed grant deed to the CITY of the real property described in Exhibit "A", and
such other executed conveyances, or instniments necessary to convey clear title as herein
required. The DEVELOPER shall provide, at the DEVELOPER'S sole cost and expense, to
the City:
(1) A preliminary title report is;;ued by a title insurance company relating to the
property offered for dedication.
(2) A standard policy of title in,~urance issued by a title insurance company and
insuring the CITY in the sun of N/A, and which shall show said property
free and clear of all liens or encumbrances except those as the CITY shall
expressly waive in writing; said policy shall be furnished at the time of
acceptance of dedication and recordation of deed.
D. Upon the condition precedent that the DEVELOPER shall perform each and every
covenant and condition of this AGREEME~VT, the CITY agrees to accept said real property
offered for dedication.
2. INSTALLATION OF WORK
It is further agreed that:
A. The DEVELOPER shall install and complete the Work within one (1) year from the
date of execution of this AGREEMENT, or such longer period as may be specifically
authorized in writing by the City Engineer. In the event the DEVELOPER fails or refuses to
complete the Work within the specified period of time, the CITY, at its sole option, shall be
authorized to complete the Work I whatever manner the CITY shall decide. In the event the
CITY completes the Work, the CITY may recover any and all costs incurred thereby from
the DEVELOPER or the DEVELOPER'S surety or both. No final inspection shall be
granted or street improvements shall not be accepted unless all the requirements for safety
purposes are installed such as sidewalks, handicap ramps, street lights, etc.
Page 3 of 10
B. The DEVELOPER shall install and complete the Work in a good and workmanlike
manner in accordance with the plans as approved by the City Engineer of Cupertino. The
Work shall be done in accordance with existing ordinances and resolutions of the CITY and
in accordance with all plans, specifications, .standards, sizes, lines, and grades approved by
the City Engineer. The Work shall be done in accordance with all State and County Statutes
applicable hereto. The decision of the C',ity Engineer shall be final as to whether any
material or workmanship meets the standards, specifications, plans, size lines and grades as
set forth.
C. It is further agreed that the Work sriall be done in accordance with the most current
Standard Specifications of the Department of Public Works, California Department of
Transportation, State of California, and in accordance with the specifications of the
Cupertino Sanitary District where applicable.
Wherever the words "State" or "California Division of Highways" are mentioned in the
State Specifications, it shall be considered as referring to the CITY of Cupertino; also
wherever the "Director" or "Director of Public Works" is mentioned, it shall be considered
as referring to the City Engineer.
In case of conflict between the State Specifications and the specifications of the CITY,
and/or the Cupertino Sanitary District, the specifications of the CITY and/or the Cupertino
Sanitary District shall take precedence over and be used in lieu of such conflicting portions.
3. EXCAVATION PERMIT
It is further agreed that the DEVELOPER shall comply with Section Three of Ordinance No.
130 of the CITY by obtaining an excavation permit from the City Engineer before the
commencement of any excavation in, or, or under the surface of any existing public street,
lane, alley, sidewalk, or other public place. It is further agreed that the DEVELOPER shall
notify the City Engineer of the exact date: and time when the proposed excavation is to
commence.
4. QUITCLAIM DEED
It is further agreed that the DEVELOPER, when requested by the CITY, shall quitclaim all
his rights and interests in, and shall grant to CITY authorization to extract water from the
underground strata lying beneath said proje:ct DEVELOPER agrees to execute a "Quitclaim
Deed and Authorization" in favor of CITY, when presented to them for signature.
5. BONDS AND OTHER SECURITY
A. Upon the execution of this AGREEMENT, the DEVELOPER shall file with the
CITY a faithful performance bond to assure his full and faithful performance of this
AGREEMENT. The penal sum of said faithful performance bond is as set forth in Part A of
the SCHEDULE OF BONDS, FEES AND DEPOSITS. In the event that improvements are
to be made under this AGREEMENT, the DEVELOPER shall, in addition to said faithful
Page 4 of 10
performance, file with the CITY, a labor and rr~aterials bond in a penal sum as set forth in
Part B of the SCHEDULE OF BONDS, FEES AND DEPOSITS. Said bonds shall be
executed by a surety company authorized to transact a surety business in the State of
California and have been approved by the City f~ttorney as to form and by the City Engineer
as to sufficiency. In the event that the DEN'fILOPoEmake any paymentllortany dedi ation
covenants and conditions of this AGREEM ,
of land, or any improvements herein required, the CITY shall call on the surety to perform
this AGREEMENT or otherwise indemnify the CITY for the DEVELOPER'S failure to do
so.
B. In lieu of a faithful performance surety bond, the DEVELOPER may elect to secure
this AGREEMENT by depositing with the CITY:
1. Cash; or,
2. A cashier's check, or a certified check payable to the order of the City of
Cupertino; or
3. A certificate of deposit, or instrument of credit meeting the requirements of
Government Code Section 66459 (b) or (c).
C. The amount of said cash, checks, certificate of deposit, or instrument of credit shall
be as designated by the City Engineer, and he3 the CITY with a faithful performancesurety
been required had the DEVELOPER furn
bond. In the event that the DEVELOPER sh;~ll fail faithfully to perform the covenants and
conditions of this AGREEMENT, or to make any payment, or any dedication of land, or any
improvements herein required, the CITY may apply the proceeds of said security thereto.
D. No release of surety bond, cash deposit, check or certificate of deposit shall be made
except upon approval of the City Council.
1 _ Schedule for bond and insurance release for paper bonds are as follows:
A. Release of 90 perce-nt of the faithful performance bond upon
acceptance by City Council.
B. Release of the r fterl all deficienciest have been ~ orrected and in the
year from acceptance a
absence of any claim against ;such bond.
C. Release of the entire ies have beenacorrec ed and m the absen e of
acceptance after all deficien.,
any claim against such bond.
D. Liability insurance, provided by the DEVELOPER to hold the CITY
harmless in the event of liability arising from the project, to be retired at the
end of one year if all deficif:ncies have been corrected and in the absence of
any claim against such insur;~rice.
Page 5 of 10
21. MAPS AND/OR IMPROVEMENT PLANS
It is further agreed that the CITY shall obtain the following map and/or plans at the
DEVELOPER'S expense:
A. A mylar blackline and ten (10) prints of fully executed improvement plans.
B. A scan in CAD format of all executed improvement plans and map.
The DEVELOPERS agree to pay the CITY from the development maintenance deposit the
cost for all prints of plans and map required ~.~nder Item 20.
22. SUCCESSORS
This AGREEMENT shall bind the heirs, administrators, executors, successor, assignee and
transferees of the DEVELOPERS. The assi;~unent of this AGREEMENT shall not be made
without approval by the City Council of the City of Cupertino.
IN WITNESS WHEREOF, CITY has causc;d its name to be hereunto affixed by its Mayor
and City Clerk, thereunto duly authorized by resolution of the City Council and said DEVELOPER
has hereunto caused their name to be affixed the da~~ and year first above written.
CITY OF CUPERTINO:
Mayor
Approved as to form•
City Attorney
City Clerk
DEVELOPER:
~,
Dominic Ip
Pr ent, Royal Re
oribio Valdivia
President, Homecomers RRC Inc.
Notary Acknowledgement Required
Exhibit A Attached
Page 10 of 10
2. Schedule for Bond And Insurance Release for Cash, CD, Set-Aside Letter are
as follows:
A. Release of 45 percent of bond upon acceptance by City Council.
B. Release of additional 45 at six months from acceptance after all
deficiencies have been corrected and in the absence of any claim against such
bond.
C. Release of remaining; 10% at one year from date of acceptance after
all deficiencies have been corrected and in the absence of any claim against such
bond.
D. Release of the liability insurance, provided by the DEVELOPER or
CONTRACTOR to hold the CITY harmless in the event of liability arising from
the subject project, at the end oi~ one year if all deficiencies have been corrected
and in the absence of any claim <<gainst such insurance.
6. CHECKING AND INSPECTION FEE
It is further agreed that the DEVELOPER shall pay any and all necessary direct expenses for
inspection, checking, etc. incurred by CITY in connection with said Project, and that
DEVELOPER shall have deposited with CITY, prior to execution of this AGREEMENT,
the amount as set forth herein at Page 2 (P~irt C.). Should construction cost vary materially
from the estimate from which said sum is calculated, the City Engineer shall notify
DEVELOPER of any additional sum due anal owing as a result thereof.
7. MAP CHECKING FEE
It is further agreed that the DEVELOPER shall deposit with CITY, prior to execution of this
AGREEMENT, for office checking of final map and field checking of street monuments, in
compliance with Section 4:1 of Ordinance I~To. 47 (Revised 12/04/61) of CITY, the amount
as set forth herein at Page 2 (Part H).
8. DEVELOPMENT MAINTENANCE DEPOSIT
It is further agreed that the DEVELOPER shall pay to the CITY, prior to execution of this
AGREEMENT, the amount set forth herein at Page 2 (Part D) as a development
maintenance deposit to insure proper dust control and cleaning during the construction
period. The development maintenance deposit may be utilized for repairs of defects and
imperfections arising out of or due to faulty workmanship and/or materials appearing in said
work during the period until release of the; surety bonds or other security permitted under
paragraph S.B by the CITY.
Page 6 of 10
Should the DEVELOPER complete the r~;quired repairs to the entire satisfaction of the
CITY, the unused balance will be returned under the release of the surety bond or other
security permitted under paragraph S.B.
9. STORM DRAINAGE FEE
It is further agreed that the DEVELOPER shall deposit with the CITY, prior to execution of
this AGREEMENT, a storm drainage charge in connection with the said Project in
accordance with the requirements established in Resolution 4422, March 21, 1977, in the
amount as set forth herein at Page 2 (Part E;i.
10. WATER MAIN EXTENSION DEPOSIT
The DEVELOPER further agrees to deposit with the CITY, those monies required to
comply with "Policy on Water Main Exte~lsions Work and Deposits" dated 9/30/77. The
deposit shall be held by the CITY until said monies are needed to implement improvements
outlined by the Director of Public Work:; or improvements outlined within the adopted
Water Master Plan.
11. ONE YEAR POWER COST
It is further agreed that the DEVELOPER shall pay to the CITY, prior to execution of this
AGREEMENT, the amount as set forth herein at Page 2 (Part F), which amount represents
the power cost for street lights for one year.
12. THE INSTALLATION OF STREET TREES
It is further agreed that the DEVELOPER shall, at such time as deemed appropriate by the
City Engineer, plant street trees in conformance with the standards of the City of Cupertino.
Variety of tree shall be selected from the CITY approved list.
13. PARK FEES
It is further agreed that the DEVELOPER shall pay such fees and/or dedicate such land to
the CITY, prior to execution of this AGRI='sEMENT, as is required within Section 18-1.602,
Park Land Dedication, Cupertino Municipal Code, and which is further stipulated under Part
I, Page 2 herein. Fees are also in accord<nce with action adopted by the City Council on
March 19, 1991 and Chapter 14.05 or Section 18-1.602 of the Cupertino Municipal Code
14. MAINTENANCE OF WORK
It is further agreed that the DEVELOPER shall maintain the Work until all deficiencies in
the Work are corrected to conform to the Plans and the City Standards and Specifications for
the Work. The DEVELOPER shall, upon written notice thereof, immediately repair or
replace, without cost or obligation to the City of Cupertino, and to the entire satisfaction of
Page 7 of 10
said CITY, all defects and imperfections arising out of or due to faulty workmanship and/or
materials appearing in said Work.
15. SANITARY DISTRICT
It is further agreed that the DEVELOPER shall file with the CITY, upon execution of this
AGREEMENT, aletter-from the Cupertino Sanitary District stating that the DEVELOPER
has submitted plans for review by the District and that sanitary sewers are available to serve
all lots within said Project.
16. GOVERNMENT COSTS
It is further agreed that the DEVELOPER shall file with the CITY, upon execution of this
AGREEMENT, substantial evidence that all provisions of Section 66493, Article 8, Chapter
4 of the Government Code, pertaining to sI-ecial assessments or bonds, have been complied
with.
17. PACIFIC GAS AND ELECTRIC/PACIFIC' BELL
It is further agreed that the DEVELOPER shall pay to Pacific Gas and Electric Company
and/or to Pacific Bell Company, any and a1L fees required for installation of overhead and/or
underground wiring circuits to all electroliers within said property and any and all fees
required for undergrounding as provided in Ordinance No. 331 of CITY when the
DEVELOPER is notified by either the Cite Engineer or Pacific Gas and Electric Company
and/or Pacific Bell Company that said fees ;sre due and payable.
18. EASEMENTS AND RIGHT-OF-WAY
It is further agreed that any easement and right-of--way necessary for completion of the
Project shall be acquired by the DEVELOPER at his own cost and expense.
It is provided, however, that in the event: eminent domain proceedings are required, the
CITY for the purpose of securing said ea:;ement and right-of--way, that the DEVELOPER
shall deposit with CITY, a sum covering th~~ reasonable market value of the land proposed to
be taken and, to be included in said sum, shall be a reasonable allowance for severance
damages, if any. It is further provided that in addition thereto, such sums as may be required
for legal fees and costs, engineering, and other incidental costs in such reasonable amounts
as the CITY may require shall be deposited with the City of Cupertino.
19. HOLD HARMLESS
It is further agreed that, commencing with the performance of the Work by the
DEVELOPER or his contractor and continuing until the completion of the maintenance of
the Work, the DEVELOPER shall indemnify, hold harmless and defend the CITY from and
against any or all loss, cost, expense, damage or liability, or claim thereof, occasioned by or
in any way whatsoever arising out of the performance or nonperformance of the Work or the
Page 8 of 10
negligence or willful misconduct of the DEVELOPER or the DEVELOPER'S agents,
employees and independent contractors, except tot eh extent any of the foregoing is caused
by the negligence or willful misconduct of ~:he CITY or the CITY'S agents, employees and
independent contractors.
20. INSURANCE
It is further agreed that: The DEVELOPED shall take out, or shall require any contractor
engaged to perform the Work to take out, and maintain at all times during the performance
and maintenance of the Work called for ~~r required to be done hereunder, a policy of
insurance naming the CITY and members of the City Council of the City of Cupertino
individually and collectively, and the officers, agents and employees of the CITY
individually and collectively, as insured. Said separate policy shall provide bodily injury
and property damage coverage to the fore€;oing named CITY and individuals covering all
the Work performed by, for, or on behalf of said DEVELOPER. Both bodily injury and
property damage insurance must be on an occurrence basis; and said policy or policies shall
provide that the coverage afforded thereb}~ shall be primary coverage to the full limit of
liability stated in the declarations, and if~ the CITY, its members of the City Council
individually and collectively, and the officers, agents and employees of the CITY,
individually and collectively, have other insurance against the loss covered by said policy or
policies, that other insurance shall not be called upon to cover a loss under said additional
policy.
The insurance carrier shall provide proof of~ their ratings. All ratings shall be a minimum of
"Best A-7" in accordance with ABAG policies.
A. Each of said policies of insurance shall provide coverage in the following minimum
amounts: For bodily injury, $100,000 each person; $300,000 each occurrence, property
damage, $50,000 on account of any one occurrence with an aggregate limit of not less than
$200,000.
B. The DEVELOPER shall file with the City Engineer at or prior to the time of
execution of this AGREEMENT by the :DEVELOPER such evidence of said foregoing
policy or policies of insurance as shall be- satisfactory to said City Engineer. Each such
policy or policies shall bear an endorserr.~ent precluding the cancellation or reduction in
coverage without giving the City Engineer ;~t least ten (10) days advance notice thereof. The
CITY shall be shown as additionally insured on a separate "Additional Insured Owners,
Lessees or Contractors" (Form A) or (Form B) Endorsement provided along with the
evidence of said foregoing policy or policies of insurance.
C. In the event that the Project covered herein should be mutually situated in or affect
the area of jurisdiction of a separate municipality or political subdivision of the State of
California, the policies of insurance required herein and above shall co-name such
municipality or political subdivision and the provision set forth herein and above for the
protection of the CITY shall equally apply to municipality and political subdivision.
Page 9 of 10
STATE OF CALIFORNIA
COUNTY O ~~
On ~~ ~~ ~ before me, _ l^I~
~ (Name, Ti of Officer)
personally appeared/ ~///UDC ~f~ ~ ~~~/~U I~~ LQ/ ~~
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), anti that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal
I
(Signature of Notary Pu )
Cl; YTilTi ~ = t 't f ] ~ 1 3 lt' 4a',
a
? ~ °'~~ ,i. i~r.aary F~ut lir - + its rat r~~;a r
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&,:% "'"Y ('4iG`,!'f7 ~'*~'S6i'L'.w~ relx't;. 1, ti y~~
(This area for notarial seal)
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_.
RESOLUTIOl`1 N0.04-360
A RESOLUTION OF THE CIT ON OF MPROVEMENT AGREEMENTINO
AUTHORIZING EXECU
BETWEEN THE CITY AND DEVELOPERS, R~O~ ~ N 342-33 045 OMECOMERS RRC
INC., 22800 MERCEDES ,
WHEREAS, there has been presented to the City Council a proposed improvement
agreement between the City of Cupertino and developer, Royal Realty and Homecomers RRC
Inc., for the installation of certain municipal improvements at 22800 Mercedes Road and said
agreement having been approved by the City A~~torney, and Developers having paid the fees as
outlined in the attached Exhibit A;
NOW, THEREFORE, BE IT RESd av'e D e Hon behalf of the Ciy ohf Cupertmlo rk are
hereby authorized to sign the aforemenhone ~
PASSED AND ADOPTED at a regul~~r meeting of the City Council of the City of
Cupertino this 19'' day of July 2004, by the following vote:
Vote Members of the C~ Council
AYES
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
S~-I